Alliance of Kosovar Businesses: Institutional failure that Kosovo is ranked as the second poorest in Europe

The World Atlas report, based on data from the International Monetary Fund, according to which Kosovo is ranked as the second poorest place in Europe, represents the clearest reflection of the economic decline that has been happening in Kosovo for years, according to the Alliance of Kosovar Businesses.

“The Alliance of Kosovar Businesses (AKB) considers it a national problem and an institutional failure that Kosovo, according to the latest international report on gross domestic product per capita by purchasing power parity, is ranked as the second poorest country in Europe, immediately after Moldova,” the Facebook post states.

As added, it is unacceptable for Kosovo to remain at the bottom of Europe in terms of economic prosperity, considering that it has the largest human resources in the region, a strong diaspora, and development potential.

The AKB assesses that Kosovo’s institutions have failed in creating serious development policies and a favorable environment for businesses and investors.

“While countries in the region are advancing through investments, production, and exports, Kosovo continues to survive thanks to the diaspora, imports, and consumption,” the AKB points out.

Businesses in Kosovo, according to them, face a constant increase in energy costs every day, a lack of institutional support, economic and political uncertainty, complex bureaucracy, the informal economy and unfair competition, as well as the absence of a strategy for domestic production.

“It is an economic and institutional disgrace that Kosovo is currently ranked behind most countries in the region, while citizens are leaving the country en masse due to the lack of economic prospects. The AKB warns that, without urgent changes in economic policies and a serious approach toward the private sector, Kosovo risks a further deepening of poverty, unemployment, and economic dependence,” the statement says.

The AKB is demanding an urgent support package for domestic production, a reduction of the fiscal burden on businesses, a halt to policies that burden the private sector, a strategy for investments and exports, as well as a sincere institutional dialogue with the business community.

“Kosovo cannot build economic development through political propaganda, but only through a real economy, production, investments, and partnership with businesses,” concluded the president of the AKB, Agim Shahini.

According to the report published by World Atlas, which is based on International Monetary Fund data on gross domestic product per capita by purchasing power parity, Kosovo ranks as the second poorest place in Europe, behind Moldova.